According to data given by the Ministry of Power, as on December, Rajasthan has saved Rs 5,068 crore from the reduction in interest costs – the highest among the states that have opted for the UDAY scheme.Debapriya Mondal | ETEnergyWorld | March 29, 2017, 20:17 IST

New Delhi: Falling interest costs on UDAY (Ujjawal Discom Yojana) bonds has led to a savings of Rs 11,989 crore for power distribution companies of various states.

According to data given by the Ministry of Power, as on December, Rajasthan has saved Rs 5,068 crore from the reduction in interest costs – the highest among the states that have opted for the UDAY scheme.

Uttar Pradesh has managed to save Rs 3,323 crore followed by Haryana that has saved Rs 2,084 crore due to the fall in interest rate on UDAY bonds.

“Issuance of these lower interest bearing bonds is significantly contributing in the reduction of discom’s interest cost,” the Ministry of Power today said in a release.

States that have joined the government’s power distribution company revival scheme UDAY (Ujjwal Discom Assurance Youjana) have so far issued bonds worth Rs 2,32,375 crores, the Ministry of Power today said.

Till date 26 states have joined the scheme and out of those 16 have opted to restructure the liabilities of their debt laden discoms.

The total debt of these 16 states is Rs 3,24,912 crores and the total liabilities that will be restructured is Rs 2,82,875 crore, the ministry said.

“Out of the total bonds issued, state bonds account for Rs 2,08,516 crore and discom bonds account for Rs 23,859 crore. Issuance of these lower interest bearing bonds is significantly contributing in the reduction of discom’s interest cost,” the ministry said.

After the issuance of these bonds, the remaining debt to be restructured stands at Rs 39,892 crore.